Nonetheless, IVR technology itself wouldn’t have lived so long without the unique advantages it offers for business, and the truth is that IVR software isn’t here just to provide self-service options for clients. IVR software is a critical component of intelligent call routing, call queue management, and customer feedback collection, so if you just put it aside, you lose too much to cover the little benefit of satisfied customers who no longer have a need to deal with that annoying IVR system
The fact is that even if you switch off your IVR solution, customers want be able to contact you effectively and quickly as IVR manages inbound call volumes by segmenting customers. Without it, all inbound calls will create one endless call queue, so there is no benefit in excluding IVR from your contact center structure - only problems will face you.
But what is it all about? Well, what if we say that there is a solution that offers the same benefits as the IVR system, but bears no disadvantages of the IVR system? Moreover, such a system is easy to find and implement, and switching from traditional IVR to it will be no problem.
What is this solution? Perhaps you have heard of it - it is called IVA, and it is often compared to its predecessor, IVR. That’s also why we called this article a rivalry - IVA vs IVR - to find out whether it is true that in this competition - IVA vs IVR - exists only one clear winner, or it is another overhyped solution that has nothing to do with real efficiency and productivity.
So, let’s come into the topic deeper.
What is IVR?
IVR (Interactive Voice Response) system is a system that uses either DTMF (Dual-Tone Multifrequency) or NLP (Natural Language Processing as speech recognition algorithms) technology to provide self-service to inbound callers.
In other words, the IVR system is often called a voice robot, because it provides pre-recorded voice messages as answers to customer inquiries. When a caller calls the contact center, he is greeted by the IVR system and offered to choose a few options from the IVR menu of options, which often contains up to 8-9 sections that refer to different potential actions customers can do through the IVR solution. For instance, sections can include such aspects of customer interactions as payments, subscription plans, current discounts and offers, previous customer service requests, and surely, an option to connect to a human agent.
In the case of DTMF technology, which is used by most IVR solutions, the customer has to press different buttons on his cell phone, and these buttons are limited to 0-9, #, *. This technology works by using sound signals of different frequencies. How does it work? Each menu section - to be precise, command of playing voice message that is linked to each menu section - is connected to the sound signal of a certain frequency that is played when you press the button that corresponds to this menu section. So, by pressing it, this signal is played, and the system on another side of the phone line recognizes it as a command.
Natural Language Processing is based on AI technologies, so the IVR system just recognizes some keywords in your request, like when you say “Can I contact the manager to discuss the case of refund for my last purchase?”, the system recognizes the word “refund” and links you to the most relevant manager.
What is IVA?
IVA (Intelligent Voice Assistant) is a modern technology that uses AI (Artificial Intelligence) to handle customer queries and provide self-service for complicated customer requests.
To put it simply, you have definitely used or seen an IVA in real life - for instance, such a widely used tool as Apple Siri is an IVA system. IVA system is perhaps the best example of use of the AI technology for the improvement of customer experience and customer satisfaction.
The main purpose of the IVA solutions is not to connect the caller to the most relevant agent but to replace the agent himself. Thus, some people think that the acronym IVA stands for Intelligent Virtual Agent or Intelligent Virtual Assistant. Moreover, there is no consensus regarding the right understanding of the IVA acronym.
The IVA's main goal is to communicate with a client as if it had been a conversation between two people. Thus, it can resolve all IVR issues regarding the quality of self-service.
IVR: main features
IVR software has a few features that make it irreplaceable for most contact centers, including:
- Call queue management - The IVR system can manage call queues by notifying customers about estimated waiting times or by offering IVR callback feature for those who can’t afford to wait;
- Automated calling - The IVR system is a powerful customer feedback collection system and it collects feedback from customers via outbound calls, surprisingly. IVR system can generate massive automated outbound calls, and send pre-recorded messages as calls to customers from different customer bases. For instance, you can launch campaigns to contact customers who have just contacted your customer service teams, so the IVR automated call will come just after the end of a conversation with an agent.
- Intelligent routing - The IVR solution collects data about all customer calls right while customers are interacting with the system, and sends this data to the ACD (Automatic Call Distribution) system to let it choose the most appropriate agent for further connection.
- Integration with other systems - The IVR software provides customers with some self-service options to use, so customers can even pay their bills, change subscription plans, and do other things about their customer journey.
- Self-service capabilities - The IVR can provide self-service with pre-recorded messages segmented by relevant topics, so people can navigate through the IVR menu sections to find the appropriate one.
IVA solution: main features
Despite the fact that IVA systems still can route customer service calls to customer service representatives if a client wants it, IVA has some unique features that can’t be provided by its older brother, IVR:
- Multilingual service - IVA is a voice assistant, so it has to use languages your customers use. For most IVA systems, it means that they offer all the languages you need to service your clients efficiently.
- Caller verification - IVA is such an advanced technology that it can use voice biometrics to identify callers and thus help to secure customer data and vital information, as well as provide personalized service for every caller.
- CRM integration - as well as IVR software, IVA contact center technology can be integrated with the CRM (Customer Relationship Management System), so when the customers call IVA it can provide really personalized experience and individualized service.
- Customer sentiment analysis - when customers contact IVA, the system can identify even slightly different tones or moods of the conversation and react accordingly to avoid conflicts or any other negative consequences for the conversation. Thanks to the development of AI technologies, the IVA system can either change the call flow or even route a call to a human agent if there is such a need.
- IVA callback - this feature is almost similar to IVR callback as it has the same purpose - to avoid the call abandonment rate increasing, so when the call queue is too long or average wait times start rising, IVA can offer a callback option for clients.
- Both text and voice input - some IVA solutions can work with both types of customer input, so they are even cost savings solutions as they can replace some chatbots.
IVA vs IVR: differences
When choosing between IVA vs IVR, you have to understand that even though both these solutions are often compared as rivals, and in the case of IVA vs IVR most experts state that IVR is the absolute underdog and has no chance of retaining its position in the near future, it doesn’t work this way. So, what are the key differences?
The rivalry IVA vs IVR is a rivalry between two solutions that are focused on the same aspects of customer service, but they still serve different purposes. Surely, in the case of IVA vs IVR there is no chance to choose both - you can set up only one solution for each business phone number customers use to contact you.
|
IVA |
IVR |
|
Purpose: provide conversational self-service and replace agent |
Purpose: provide self-service only for common questions, while for complex issues it has to provide relevant call routing |
|
Secondary purpose: provide callback options |
Secondary purposes: manage call queues, provide callback options, collect feedback |
|
Works with: inbound calls only |
Works with: inbound calls and automated outgoing calls too |
|
IVA costs: depends on the vendor, isn’t sold as a free add-on for contact center software |
IVR operating costs: are included in the cost of the contact center solution. If sold separately, costs less than the IVA. |
|
Main technology: AI technologies, such as NLP and NLU |
Main technology: legacy DTMF, or NLP (voice recognition technologies) in some cases |
IVA vs IVR: what will suit your business better?
There are many factors that will influence the final business decision when it comes to choosing IVA vs IVR. When it comes to costs in this comparison - IVR vs IVA - IVR is more affordable and it will be a better option for SMBs (small- and midsize businesses). First of all, small businesses and startups often don’t have any free budget for such advanced, but not must-have solutions, as IVA, so in this case, in the battle between IVR vs IVA, IVR gets one point in its favor.
Secondly, you have to understand your primary needs and business requirements. What is the highest priority? Customer service quality or wise management of unbound call volumes and ability to manage the agent workload? If you need a solution that will help your agents deal with peak hours, provide basic self-service options on a 24/7 basis, reduce agent turnover, reduce customer wait times, and help manage the call queue and reduce call abandonment rate, then again - on such occasions, you have to choose IVR between IVR vs IVA.
If your company is looking for more advanced solutions and you understand that you are at that stage of business development where the customer service experience is now the highest priority, then in the IVR vs IVA case, IVR has no chance. Yes, you can start by switching from the DTMF-driven IVR to NLP-driven IVR, but still - in the case of customer service quality, IVR vs IVA is a battle with a clear winner, and it’s not the Interactive Voice Response system.
Conclusion: what is better - IVA vs IVR?
So, choosing IVA vs IVR is a difficult question because it will have its unique answer for each individual case. The only fact that we can state now is that there is a really high possibility that the IVA system will gain a big segment of the market that is now owned by IVR solutions. Even though IVR isn’t going to be diminished from the market totally, it will give some of its positions to IVAs, as IVA is just a more customer-oriented, personalized and proactive solution than IVR. Nonetheless, integration between IVR and AI technologies also streamlines, so there is also a chance that we will have both AI-driven IVRs and IVAs as two types of different solutions and the choice will depend on personal preferences only.
FAQ
What does IVA mean?
IVA stands for Intelligent Voice Assistant, Intelligent Virtual Agent, or Intelligent Virtual Assistant - well, all three definitions point to its nature - it is an AI-driven voice assistant that is used in call centers to replace the work of human agents.
What is the main difference between IVR vs IVA?
The main difference is the technology that is used - IVA uses NLU (Natural Language Understanding), while IVR uses either NLP or DTMF. Also, IVA provides conversational AI service, while IVR still focuses on routing calls to human agents and offers self-service rather as an option, not its main function. Both IVR and IVA automate some routine tasks, but IVR is limited - it can work with a limited number of customer inputs, answer only using pre-recorded voice prompts, and connects almost all calls to contact center agents.
Is IVA just a marketing project?
No, it isn’t. IVA marketing is strong now, but it is logical - IVA is just a new-gen solution to replace legacy IVRs which often harm customer business success and customer experience. IVRs no longer meet customer expectations, and they can resolve only simple tasks as a self-service solution. IVA is a part of digital transformation and it is definitely one of the most effective self-service support solutions available now.
What is the difference between chatbots and IVAs?
IVA is a voice assistant, which means you can have a normal conversation with an IVA, while chabot is a text tool and you still can communicate with it as with a real person (if it’s AI-driven), but only in text.
What are IVA vs IVR costs?
IVA is now sold mostly as an additional solution and prices differ extensively from vendor to vendor. IVR is almost always included in the price of call center solutions.
Can I upgrade from IVR to IVA?
Yes, you can. You just need to find a vendor that will adapt your current call center solution for IVA integration and replace your existing IVR system, and you are all set.
Are there any security issues regarding IVA?
There are none. IVA is a modern solution that uses all the best security techniques to avoid any issues, so it is in no way less secure than your current cloud-based call center solution. IVA can even eliminate security breaches as it can use voice biometrics to identify callers.
